Cover: Excise Taxes, Regulation, and the Demand for Cigarettes

Excise Taxes, Regulation, and the Demand for Cigarettes

Published 1988

by Jeffrey Wasserman

Download eBook for Free

FormatFile SizeNotes
PDF file 5.4 MB

Use Adobe Acrobat Reader version 10 or higher for the best experience.

More than 320,000 people die prematurely each year as a result of their smoking. Consequently, public health gains may be made by developing and implementing effective policies to discourage cigarette consumption. This study examines the potential of two policies--increasing excise taxes and restricting smoking in public places--that may effect reductions in aggregate cigarette smoking and a subsequent improvement in public health. The study presents empirical analyses of these two policy alternatives. Specifically, it develops and applies several models of the demand for cigarettes to explore the ways excise taxes and regulations affect the smoking behavior of both adults and teenagers. The findings suggest that, in the short run, increased excise taxes coupled with additional regulations on smoking in public places will significantly reduce cigarette consumption. However, before effective long-run anti-smoking policies can be developed, considerably more needs to be learned about the determinants of smoking behavior.

This report is part of the RAND paper series. The paper was a product of RAND from 1948 to 2003 that captured speeches, memorials, and derivative research, usually prepared on authors' own time and meant to be the scholarly or scientific contribution of individual authors to their professional fields. Papers were less formal than reports and did not require rigorous peer review.

This document and trademark(s) contained herein are protected by law. This representation of RAND intellectual property is provided for noncommercial use only. Unauthorized posting of this publication online is prohibited; linking directly to this product page is encouraged. Permission is required from RAND to reproduce, or reuse in another form, any of its research documents for commercial purposes. For information on reprint and reuse permissions, please visit www.rand.org/pubs/permissions.

RAND is a nonprofit institution that helps improve policy and decisionmaking through research and analysis. RAND's publications do not necessarily reflect the opinions of its research clients and sponsors.